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Front cover

IBM Financial Transaction Manager


on z Systems Platforms

Saran K Bommakanti
Michael Dircz
Kenneth Muckenhaupt

Solution Guide
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Introduction
The IBM® Financial Transaction Manager (FTM) on IBM z Systems™ platforms is an industry
software package that manages, orchestrates, and monitors commercial and consumer
financial transactions. It provides the functionality to create and collect the state of
transactions while also providing integration capability and common data and message
models that are based on the ISO 20022 industry standard.

This IBM Redbooks® Solution Guide provides an overview of the business value of using the
IBM FTM and offers solution options that are available now on z Enterprise Systems.

Did you know?


In the global banking climate, banks are facing the following unprecedented demands:
򐂰 Implement faster or immediate payments
򐂰 Streamline IT operations across lines of business
򐂰 Improve revenue in an era of stringent regulations

IBM FTM that is deployed on z Systems platforms provides a highly scalable and secure
platform with which you can gain visibility and control of all payment transactions that help to
balance financial risk and facilitate effective financial planning and performance management.

© Copyright IBM Corp. 2016. All rights reserved. ibm.com/redbooks 5


Business value
Real Time Gross Settlement (RTGS), faster payments, payment hubs, and Single Euro
Payment Authority (SEPA) are all a small fraction of the issues and trends modern banks
must address to remain profitable and competitive. For most banks, 16 - 24% of their revenue
is derived from payments. By 2016, over $1.4 trillion in revenue will come from payments. The
IBM FTM enables banks to automate commercial and consumer payments by using the latest
software and hardware technologies from IBM.

IBM FTM in commercial payments provides the following benefits:


򐂰 Provides the runtime environment for payment processing. These processes are
customized to each customer situation that is based on samples that are provided by IBM.
򐂰 Facilitates dash-boarding and reporting for operations and clients.
򐂰 Enables tracking and tracing for batch payment files and single transactions throughout
the integrated process.
򐂰 Integrates to (and shields) the back-office processing application from external standards
changes.
򐂰 Manages message orchestration, which enables common processes, such as canceling,
rekey, approval, and other common entry, repair, and investigation functions.

The IBM FTM Product Family also manages message orchestration, which enables common
processes, such as canceling, rekey, approval, and other common entry, repair, and
investigation functions.

Compared to IBM FTM in commercial payments, IBM FTM in consumer payments includes
the following benefits:
򐂰 Provides standardized processing of payments, such as files, batches, and transactions
򐂰 Tracks incoming transactions to original batch files and back-office processing systems
򐂰 Allows for smoother introduction of new channels; for example, mobile
򐂰 Shields back-office processing from external standards changes
򐂰 Provides the runtime environment to implement features, such as least cost routing

Solution overview
IBM FTM is a customizable framework for the banking industry. It is built upon IBM’s leading
middleware products, such as IBM Integration Bus (IBM IB), IBM WebSphere® Message
Queuing, IBM DB2®, IBM WebSphere Application Server and IBM Cognos® Reporting.

IBM FTM that is deployed on Linux on z Systems platforms takes advantage of


industry-leading IBM middleware and a world-class database and hardware platform to
provide a solid foundation for your payment or securities transactions. IBM FTM that is
deployed on Linux on z Systems platforms also gives you a virtualized platform that is
designed for flexibility and scalability.

Because it is a single system image, the z Systems architecture simplifies the cost and
management of your software licenses. The system is designed to protect your data with a
Common Criteria Evaluation Assurance Level 5+ (EAL5+) certification rating for security. IBM
DB2 for z/OS® also is engineered to use the z Systems platforms architecture and provides a
solid, efficient data hub for your information.

6 IBM Financial Transaction Manager on z Systems Platforms


The Linux on z Systems platforms offers a uniquely powerful enterprise Linux solution for
data center simplicity, trusted operations, and unrivaled economics. It is an enterprise-grade
platform for Linux, which is fully supported by enterprise-grade capabilities, such as
nondisruptive scalability, unparalleled availability, and continuous data protection. With all of
these capabilities that are combined in an integrated z Systems platform, IBM FTM provides a
flexible, scalable, and highly available environment to support the 24 x 7 operations that are
needed by financial transaction processing institutions.

Solution architecture
The IBM FTM architecture provides ultimate flexibility in any bank’s processing environment.
The solution is built on a set of core capabilities and yet is modular in that new payment types
can be added incrementally.

A high-level view of the IBM FTM architecture is shown in Figure 1.

Figure 1 IBM FTM high-level architectural overview

Options on z Systems platforms


There are at least two major options for implementing IBM FTM on Linux for z Systems
platforms. In this section, both options are described.

7
Solution deployment on Linux for z Systems platforms with DB2 z/OS
An architectural overview of the infrastructure when this option is used is shown in Figure 2. It
includes the major IBM FTM components that are placed on Linux for z Systems platforms,
and uses the strengths of DB2 that is running in an IBM Parallel Sysplex® and Data Sharing
on z/OS, which provides increased reliability, scalability, and security.

Figure 2 Architecture based on Linux for z Systems platforms and DB2 for z/OS for the IBM FTM core components

The DB2 database is accessed by IBM FTM by deploying IBM DB2 Connect™ on Linux for
z Systems as a gateway. This option might be preferable for someone who more comfortable
with DB2 on z/OS because of skills or experience with processes, such as automatic failover.

8 IBM Financial Transaction Manager on z Systems Platforms


IBM FTM on Linux for z Systems
This second option places all of the IBM FTM components on Linux for z Systems, including
DB2 for Linux, UNIX, and Windows operating systems. This option might be simpler and
requires only one set of Linux skills. As shown in Figure 3, IBM FTM can be integrated with
payments systems on z/OS, Linux for z Systems, and distributed platforms.

Figure 3 Architecture that is based on Linux for z Systems platforms for the IBM FTM core components

This deployment option uses the operating system Linux on IBM z Systems platforms
capabilities and provides the following benefits:
򐂰 Communication between processes that are running on Linux on z Systems platforms
occurs over a high-performing and secure communication, such as an IBM z/VM® guest
LAN or VSwitch.
򐂰 Specialty engines, such as the Integrated Facility for Linux (IFL), lower the cost of the
overall solution.
򐂰 Scalability and flexibility by using virtualized Linux servers. The number of Linux servers
can be easily increased and decreased based on workload, test, and development needs.

In addition, the workload can be balanced across two or more instances of IBM FTM for even
higher availability by using technologies that can help with availability, such as z/VM Single
Systems Image for clustering technology and IBM Tivoli® Systems Automation for
Multi-Platform.

9
Usage scenarios
IBM FTM can be used in various ways within an organization. One common usage scenario is
to have IBM FTM provide a centralized payment hub for message transformation, tracking,
and routing. As shown in Figure 4, IBM FTM is a payment hub for wire transfer processing.
The wire transfer system executes the movement of money, and the status is tracked through
IBM FTM.

OFAC
Screening
Wire Transfer
Systems
Wire
Distributed Env. Status

Wire FX Rates
Origination

FTM Payment Hub


Message Transformation, Tracking, and Routing

Figure 4 Payment hub for wire transfer

10 IBM Financial Transaction Manager on z Systems Platforms


A second scenario provides an even broader application of IBM FTM, which positions it as the
enterprise payments hub. A bank can use the message transformation, tracking, and routing
for many payment types and many origination systems. Figure 5 shows the payments hub
that is used for purchase order exchanges, Automated Clearing House (ACH), Single Euro
Payments Area (SEPA), wire transfer processing, and information reporting.

Wire Transfer SEPA Reporting


Systems

Distributed Env. . .

FTM Payment Hub


Message Transformation, Tracking, and Routing

Purchase
Order
Exchanges
.

Figure 5 Enterprise payments hub

Integration
At the heart of IBM FTM is the Transaction Processing Engine that is built upon the IBM IB
and WebSphere MQ.

The IBM IB and WebSphere MQ were chosen specifically for their strengths in easy
integration with other IBM products and customer’s infrastructure and applications. Integration
can be accomplished in the following ways:
򐂰 Receiving business transactions through HTTP or an WebSphere MQ message through
sending of a file via FTP or IBM Sterling Connect:Direct®.
򐂰 Producing outbound messages, files, and so on through WebSphere MQ, file sending via
FTP, or IBM Sterling Connect:Direct.

11
Supported platforms
IBM FTM suite supports the Linux on IBM z Systems platform, in addition to IBM z/OS, IBM
AIX®, Microsoft Windows (for development environments), and Red Hat Enterprise Linux
platforms.

Ordering information
Ordering information can be found in the following IBM Announcement letter, 215-303, dated
July 21, 2015:
http://www.ibm.com/common/ssi/rep_ca/3/897/ENUS215-303/ENUS215-303.PDF

Related information
For more information, see the following resources:
򐂰 IBM Redbooks:
– Financial Transaction Manager Technical Overview, SG24-8187:
http://www.redbooks.ibm.com/abstracts/sg248187.html
– IBM Financial Transaction Manager for Automated Clearing House Services,
SG24-8320:
http://www.redbooks.ibm.com/abstracts/sg248320.html
– IBM Financial Transaction Manager for Corporate Payment Services, TIPS1001:
http://www.redbooks.ibm.com/abstracts/tips1001.html
򐂰 IBM Financial Transaction Manager product page:
http://www.ibm.com/software/products/en/financial-transaction-manager
򐂰 IBM Offering Information page (to search on announcement letters, sales manuals, or
both):
http://www.ibm.com/common/ssi/index.wss?request_locale=en
On this page, enter <solution name; remove angle brackets>, select the information type,
and then, click Search. On the next page, narrow your search results by geography and
language.

12 IBM Financial Transaction Manager on z Systems Platforms


Authors
This Solution Guide was produced by a team of specialists from around the world working at
the International Technical Support Organization, Poughkeepsie Center.

Saran K Bommakanti is a z Systems Banking and Payments industry Chief Solution


Architect. He has over 16 years of experience working in the banking and payments industry.
He also has held several management positions in IBM. He led several core banking and
payment transformation projects and works closely with many independent worldwide
software vendors to build partnerships to grow the z Systems platforms (z/OS and Linux on z)
application portfolio.

Michael Dircz is a Client Technical Advisor on the Wells Fargo Integrated Account in the US.
He has over 35 years of experience in the IT field for the banking industry. His areas of
expertise include enterprise architecture in banking, banking availability architectures, and
Linux on z Systems platforms application adoption. He has written extensively about banking
resiliency and strategies to enable customers to adopt and grow Linux on z Systems
platforms as a platform for applications.

Kenneth Muckenhaupt is an Executive Consultant in the Financial Services Sector in the


IBM Systems Executive Advisory Practice. He has over 37 years experience in IBM hardware
and software development. Ken is the thought leader for the integration of IBM hardware and
middleware technologies for the development of complex, multiplatform banking and financial
market solutions. As an Executive Advisory Consultant, he has access to IBM’s worldwide
team of systems architects, IT specialists, and subject matter experts across the IBM
Systems Group, service organizations, and sales professionals.

Thanks to the following people for their contributions to this project:


򐂰 Lydia Parziale
International Technical Support Organization, Poughkeepsie Center
򐂰 Alan Fitzpatrick, Sean Dunne
IBM Ireland

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Find out more about the residency program, browse the residency index, and apply online at:
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14 IBM Financial Transaction Manager on z Systems Platforms


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© Copyright IBM Corp. 2016. All rights reserved. 15


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IBM® System z®
IBM z™ Tivoli®

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Other company, product, or service names may be trademarks or service marks of others.

16 IBM Financial Transaction Manager on z Systems Platforms


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REDP-5219-00

ISBN 0738455334

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